The Union Skill Development and Entrepreneurship Minister recently inaugurated the 13th Federation of Indian Chambers of Commerce & Industry (FICCI) Global Skills Summit in 2022. The theme for this event was “Education to Employability – Making It Happen”. FICCI, established in 1927, is a non-profit, non-governmental organization. It’s the largest and oldest apex business organization in India, providing a platform for networking, consensus-building across sectors, and an essential port of call for Indian industry, policymakers, and the international business community.
Status of Skill Development in India
The 2015 Report on National Policy on Skill Development and Entrepreneurship highlighted that only 4.7% of India’s total workforce had obtained formal skill training, quite low when compared to 52% in the US, 80% in Japan, and 96% in South Korea. The National Skill Development Corporation (NSDC) study conducted over 2010-2014 pointed towards an additional requirement of around 10.97 crores skilled manpower in 24 key sectors by 2022. Along with this, it was deduced that the existing 29.82 crore workforce of farm and nonfarm sector needed to be skilled, reskilled, and upskilled.
Challenges Faced in Skill Development
With a significant number of new entrants expected in the workforce by 2023, current policy efforts might be inadequate. Other issues include overdependence on the District Skills Development Committees for implementation of schemes such as Pradhan Mantri Kaushal Vikas Yojana, discontinuity of policy processes, and employer’s unwillingness due to credit access issues leading to a decline in job creation.
Need for Skill Development
With a rising unemployment rate, there is an immediate need for skill development. The workforce entering the job market lacks the necessary skillsets, leading to a supply-demand mismatch. According to the India Skills report of 2015, only 37.22% of surveyed people were found employable, highlighting the urgent requirement for vocational training and skill enhancement.
Initiatives Taken for Skill Development
Several initiatives, including the flagship Pradhan Mantri Kaushal Vikas Yojana (PMKVY), SANKALP and STRIVE programmes, have been launched to provide short-term training and enhance skills via ITIs as well as apprenticeship schemes. Other important actions include mandatory CSR expenditure in skilling, with corporations investing over ₹100,000 crores in various social projects since 2013, including ₹6,877 crores on skilling and livelihood enhancement projects.
New Approaches to Skill Development
The TEJAS initiative was recently launched at the Dubai Expo, 2020. This unique Skill India International Project aims at skilling, certification, and overseas employment of Indians, creating pathways to enable the Indian workforce to align with skill and market requirements in the UAE.
Skill development has become a crucial aspect of India’s growth strategy, especially given its significant demographic dividend. Ensuring coordinated efforts from stakeholders including government agencies, industries, educational and training institutes, and students can help leverage this potential and make the workforce more skilled, productive, and employable.